Stocks Dip on Mortgage Fears

Foreclosure worries continue to simmer
By Jonas Oransky,  Newser Staff
Posted Sep 28, 2007 3:22 PM CDT
Stocks Dip on Mortgage Fears
(FILES)A home sits for sale 25 July, 2007 in Batavia, Illinois...   (Getty Images)

The markets dropped today on news that mortgage defaults last month climbed 30% from a year earlier, more evidence that foreclosures are on the rise. Wells Fargo and Washington Mutual tumbled, and the Dow dipped 17.31 to 13,895.63. Stocks bottomed out after a Fed official said players shouldn’t “bake into the cake” future rate cuts, Bloomberg reports.

The Nasdaq declined 8.09 to 2,701.50, and the S&P 500 fell 4.63 to 1,526.75. The two largest Medicare providers fell on expectations that high prices might mean they lose a total of 1 million clients next year. In brighter news, personal spending was up 0.6% in August, leading one manager to say: “I’m still bullish.” (More NASDAQ stories.)

Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.